VKF_FRAE_2017

CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE IN NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI AND ITS FINANCIAL SUBSIDIARIES EXPLANATIONS AND NOTES RELATED TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 368 VakıfBank Annual Report 2017 Cost Carrying Value Prior Period TL FC TL FC Collateralized/blocked investment securities 556,248 140,600 576,573 140,621 Investments subject to repurchase agreements 4,680,338 - 5,323,556 - Held for structural position - - - - Receivable from security borrowing markets - - - - Collateral for security borrowing markets - - - - Other (*) 1,821,464 - 2,139,785 - Total 7,058,050 140,600 8,039,914 140,621 (*) The securities held as free that are not subject to collateral/blockage or other transactions are presented in the “Other” line. 7. Investments in associates Unconsolidated investments in associates Title Address (City/ Country) Parent Bank’s Share – If Different, Voting Rights (%) Bank Risk Group’s Share (%) 1 Roketsan Roket Sanayi ve Ticaret AŞ (*) Ankara/Turkey 9.93 9.93 2 Bankalararası Kart Merkezi AŞ İstanbul/Turkey 9.70 9.70 3 KKB Kredi Kayıt Bürosu AŞ İstanbul/Turkey 9.09 9.09 4 Güçbirliği Holding AŞ İzmir/Turkey 0.07 0.07 5 İzmir Enternasyonel Otelcilik AŞ İstanbul/Turkey 5.00 5.00 6 İstanbul Takas ve Saklama Bankası AŞ (*) İstanbul/Turkey 4.37 4.37 7 Kredi Garanti Fonu AŞ (*) Ankara/Turkey 1.54 1.54 8 Tasfiye Halinde World Vakıf UBB Ltd. Lefkoşa/TRNC 82.00 85.32 Total Assets Equity Tangible Assets Interest Income Income on Securities Portfolio Current Year’s Profit/(Loss) Prior Period’s Profit/Loss Fair Value 1 4,185,749 1,062,721 716,013 13,978 - 173,897 128,591 - 2 90,246 49,094 47,325 1,656 - 9,004 10,403 - 3 282,149 183,485 179,270 6,467 - 44,798 34,759 - 4 144,158 (45,685) 88,005 360 - (10,162) (3,360) - 5 120,766 (27,699) 83,574 4 - (6,271) (21,798) - 6 9,913,087 1,170,007 97,419 281,518 7,404 201,251 162,178 - 7 486,557 462,323 10,969 21,449 - 127,873 17,738 - 8 1,104 (125,554) - 66 - (12,193) (8,988) - (*) The financial statement information provided for these associates is taken from the financial statements dated September 30, 2017. In the current period, subsequent to the approval of the decision to increase the paid-in capital of Kredi Garanti Fonu AŞ from TL 278,439 to TL 318,282. The share of the Bank amounting to TL 177 is presented in the movement table of investments in associates as bonus shares received. During the capital increase, the share of the Bank decreased from 1.69% to 1.54% due to the participation of new banks in the association.